Jefferies Downgrades SunPower Corporation to Hold, Reduces PT to $19

Jefferies downgraded its rating on SunPower Corporation

from Buy to Hold. At the same time, Jefferies lowered its price target on the company's stock from $26 to $19. In a research report published today, Jefferies explained its decision by arguing the company's stock will be weak after the takeover by Total is completed. In the report, Jefferies states, "We remain optimistic on the Total synergy longer term, but the current state of the industry does not warrant a Buy on SPWR at this time. We are confident the acquisition will close soon, and believe the stock will be weak afterwards in light of lowered FY11 guidance." On Tuesday, SunPower added 0.53% to its value to close the day at $20.95. Its shares lost all of yesterday's gains in today's pre-market trading, however, sliding 3.77% to $20.16.